VICI Properties expects to raise $2 billion from an offering of common stock to fund half the cost of its purchase of the Las Vegas properties of Las Vegas Sands.
The offering, which was slated to close March 8, comprised 60 million shares at $29 per share, with an option for underwriters to purchase an additional 9 million shares.
VICI, one of the big three gaming industry REITs, is buying The Venetian and The Palazzo on the Las Vegas Strip and the nearby Sands Expo & Convention Center for $6.25 billion in partnership with private equity heavyweight Apollo Global Management.
VICI has agreed to cover $4 billion of the purchase, with Apollo contributing $2.25 billion, of which $1.2 billion is seller financing.
Apollo will operate the properties under a triple-net lease with VICI totaling $250 million a year.
